Mark Cuban may be a billionaire, but his money advice is surprisingly practical for everyday Americans’ spending habits and investment strategies. The “Shark Tank” star has built his fortune by following simple financial principles, and, more importantly, avoiding costly mistakes.
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Cuban believes that wasting money on unnecessary expenses, taking on debt and ignoring smart investing can derail your financial future. If you want to build real wealth and improve your financial health, here are six money habits Cuban said you should stop right now.
1. Saving Without Investing
In the juggernaut that is Mark Cuban’s financial advice, he consistently warns that you’re not going to grow your money by simply parking it in a savings account. This is a money habit to avoid, as depending on the interest rates, even high-yield accounts can’t always keep up with inflation, eroding your purchasing power.
Instead of this common money mistake, once you’ve set aside three to six months of living expenses in an emergency fund, put further savings to work. He recommended investing in assets like index funds, real estate or other vehicles that historically grow faster than inflation.
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2. Carrying High-Interest Debt
Cuban has been blunt about high-interest debt, especially credit card debt — he sees it as one of the fastest ways to stay broke. Every dollar you owe in interest is a dollar that could have been invested instead. He has urged people to pay off these balances as quickly as possible and then redirect their income into wealth-building strategies.
3. Overpaying for Everyday Items
Though they have the margins to get away with it, even the super-rich avoid wasting money. In fact, one of Cuban’s billionaire money tips is that he still buys staples like toothpaste in bulk because paying less per unit is like an instant return for your smart money management. He recommended looking for ways to cut costs on items you buy regularly instead of wasting cash on convenience shopping.
4. Overspending on Status Symbols
Cuban may not be quite as humble as Warren Buffett, but he doesn’t flaunt luxury like other billionaires, either. He avoids pricey watches and suits, preferring T-shirts and casual dress. Follow his lead and put your money toward assets that grow, not items that only drain your wallet to keep up some hollow status signaling.
5. Taking On Excessive Student Debt
Education is becoming less affordable, but even still, Cuban has cautioned students against overpaying for their education. He attended Indiana University because it was the most affordable of the top business schools, not some prestigious or pricey Ivy League school. With tuition costs climbing, he warned younger people against saddling themselves with massive loans that take decades to pay off.
6. Outsourcing What You Can Do Yourself
Despite being able to afford a chauffeur or butler, Cuban prefers to drive himself and keep his household expenses simple. He also values privacy and control. As nice as it is to have others do things for you, he recommended against outsourcing tasks you can manage affordably on your own and putting that money toward bigger goals instead.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 6 Things Mark Cuban Wants You To Stop Doing With Your Money
